The Matching Principle States That Expenses Should Be Matched with Revenues

question 104

Multiple Choice

The matching principle states that expenses should be matched with revenues because

• A) assets should be matched with liabilities.
• B) dividends should be matched with shareholder investments.
• C) cash payments should be matched with cash receipts.
• D) efforts should be matched with accomplishments.

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Definitions:

United States Supreme Court

The highest federal court of the United States, which has ultimate jurisdiction over all federal and state court cases involving matters of federal law.

Justices

Judges serving on a court, especially the higher courts such as the Supreme Court.

Deposition

A sworn, out-of-court testimony by a witness or party in a legal case, usually recorded for later use in court.

Pretrial Discovery

A legal process in which parties to a lawsuit gather information from each other prior to trial to prepare their cases.